Exercise 9-15 Flexible Budget Performance Report in a Cost Center [LO9-1, LO9-4] Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: $16.50q Direct labor 4,600 1.60 Indirect labor 5,000 0.40a Utilities 1,300 0.40a Supplies Equipment depreciation $18,500 2.70 $8,100 Factory rent $2,500 Property taxes $13,300 0.50 Factory administration The actual costs incurred in March in the Production Department are listed below: Actual Cost Incurred in March Direct labor 65,970 10,340 Indirect labor 7,030 Utilities 3,150 Supplies 29,030 Equipment depreciation 8,500 Factory rent 2,500 Property taxes 14,580 Factory administration